In the prior art, it is common to implement pricing or promotion strategies for a chain of retail outlets. However, a problem often arises because one or more local unit managers complain that the overall pricing or promotion strategy does not apply to their stores; the “yes, but my store is different” syndrome. Often times, the local manager's observations are accurate due to the access to local information and experience that is typically unavailable to corporate headquarters.
Consequently, there is a need to develop better techniques for identifying the price sensitivities of a store or business unit. The present invention solves this need by providing a method to permit the identification of the price sensitivities of one or more stores. With this information, a business owner can determine whether a particular store can raise prices or is too price sensitive and should concentrate on promotions rather than raising prices.